Investor Update: Gokaldas Exports Ltd. – Q3 FY26 Performance & Strategic Outlook

Executive Summary Despite reporting a contraction in key financial metrics for Q3 FY26, Gokaldas Exports witnessed share price appreciation of up to 4% in early trading. Investor sentiment appears buoyed by anticipation of favorable policy interventions in the Union Budget 2026, counterbalancing the immediate operational headwinds caused by global tariff pressures. 2. Operational Headwinds & Resilience Management attributed the muted growth to external factors, specifically the impact of US tariffs which have pressured margins. However, internal efficiency and diversification provided some insulation: India Operations Outperformance: Domestic operations delivered 8% YoY growth, significantly outperforming the broader Indian apparel export sector, which remained flat. African Market Expansion: A strengthening order book from Africa was cited as a key driver improving the immediate outlook. 3. Strategic Outlook & Growth Drivers The long-term thesis remains tethered to trade policy developments and market diversification: EU Market Potential: The European Union currently contributes 16-17% of total revenue. Management views the potential India-EU Free Trade Agreement (FTA) as a major catalyst. Capex Allocation: Capital expenditure plans for the EU region will be accelerated upon the deal's expected fruition in 2027. Management targets increasing EU revenue contribution to 19-20% within a year of the agreement. Margin Guidance: In the near term, EBITDA margins are expected to stabilize in the high single-digit range as the company navigates current tariff regimes.